Data Centers in New Jersey

New Jersey – Premier NYC & Philly Metro Alternative

New Jersey offers a dense, well-connected data center market that provides low-latency access to the New York City and Philadelphia metropolitan areas without the cost premium of a Manhattan address. Its strategic location and rich fiber network make it an essential hub for financial services, enterprises, and cloud providers requiring resilient, high-performance infrastructure to serve the northeastern United States.

New Jersey: At A Glance

Network & Connectivity Ecosystem

New Jersey is one of the most important connectivity markets in North America, acting as the primary network gateway for the New York City metropolitan area.

Carrier Density & Carrier Neutrality: With over 62 providers, including a dense concentration of global and regional carriers, the state supports a highly competitive and resilient interconnection environment, as of September 2025. This ensures excellent options for network services, redundancy, and pricing.

Direct Cloud On-Ramps: New Jersey provides direct, low-latency connections to major cloud providers. Over 3 dedicated on-ramps enable access to 13 cloud regions, as of September 2025. Available providers include AWS, Google Cloud (GCP), Microsoft Azure, and IBM Cloud.

Internet Exchange Points (IXPs): While many facilities rely on private peering, major exchanges in nearby New York City, such as DE-CIX New York and NYIIX, are easily accessible. This provides robust peering opportunities with hundreds of domestic and international networks.

Bare Metal: Bare metal server options are widely available from multiple providers in the state. Global providers like Hivelocity and phoenixNAP offer dedicated server solutions for workloads requiring maximum performance and control.

Power Analysis

New Jersey's power infrastructure is well-established to support its dense concentration of data centers.

Average Cost Of Power: Industrial power rates typically range from $0.11 to $0.14 per kWh, as of September 2025. This pricing is competitive for the Northeast and offers significant savings compared to adjacent markets like New York City.

Power Grid Reliability: The state's power grid is well-engineered, with significant investment in redundancy to support mission-critical facilities. Major data center clusters are served by multiple substations, providing reliable and consistent power delivery necessary for high uptime operations.

Market Access, Business & Tax Climate

The state's location and business environment make it a strategic choice for deploying digital infrastructure.

Proximity To Key Business Districts: Data centers in Northern New Jersey offer low-latency connectivity to Manhattan's financial district, while facilities in Central and Southern New Jersey serve the Philadelphia metro area. This proximity is critical for financial trading, media, and enterprise applications.

Regional Market Reach: From New Jersey, organizations can effectively serve a massive population base across the entire Northeast corridor, from Boston to Washington, D.C., with minimal latency.

Tax Advantage For Data Centers: New Jersey offers a state tax credit program tied to significant capital investment and the creation of new full-time jobs. This incentive helps reduce the total cost of ownership for large-scale data center deployments.

Natural Disaster Risk

New Jersey has a High risk profile for natural disasters, with a FEMA National Risk Index score of 75.31, as of September 2025. The risk is driven primarily by its coastal location and weather patterns.

Key hazards include hurricanes, riverine flooding, strong wind, winter weather, and lightning. While the overall risk score is high, data center operators in the region are experienced in mitigating these threats through hardened facility design, backup power systems, and established emergency protocols.